Fitch Rates National City Credit Card Master Note Trust 2006-1 'AAA/A/BBB'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- National City Credit Card Master Note Trust's $371.875 million class A floating-rate asset backed notes, series 2006-1 are rated 'AAA' by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . The corresponding $25.5 million class B and $27.625 million class C floating-rate asset-backed notes are rated 'A' and 'BBB', respectively. The ratings are based on the quality of the receivables pool, available credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing , National City Bank's underwriting and servicing capabilities, and the transaction's legal and cash flow structures. Credit enhancement for series 2006-1 totals 12.5% for the class A notes and 6.5% for the class B notes. Class A enhancement is comprised of 6% subordination of class B notes and 6.5% subordination of class C notes. Class B enhancement is comprised of 6.5% subordination of class C notes. Credit enhancement for the class C notes is supported by a dedicated spread account. Class A noteholders will receive monthly interest payments of one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). (1mL) +0.04%. Class B and C noteholders will receive monthly interest payments of 1mL+0.15% and 1mL+0.28% per annum Per annum Yearly. , respectively. Noteholders will receive monthly interest payments on the 15th business day of each month, commencing May 15, 2006. The ratings address the likelihood of investors receiving full and timely interest payments in accordance with the terms of the underlying documents and full repayment of principal by the March 15, 2013 legal final termination date. They do not address the likelihood of principal repayment by the expected note payment date of March 15, 2011 for class A, B, and C notes. Early pay-out events protect noteholders from prolonged exposure to deterioration in portfolio performance and/or a seller/servicer default. Occurrence of a pay-out event will trigger a rapid acceleration of principal, and investors may be repaid earlier or, in rare circumstances, later than expected. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion